The federal government has vowed to reintroduce legislation for a luxury car tax, after the measure was defeated by the Opposition today.
Labor's plan to increase the tax on cars worth more than $57,000, has been overturned in the Senate by 34 votes to 33.
Government Leader in the Senate Chris Evans, says Labor hasn't given up on the $550 million budget measure.
"Next week we will reintroduce the bill," Mr Evans said.
"Next week we will attempt again to get the Liberals to become responsible, to say the needs of Australian families are more important than the purchase of luxury cars."
"We ask all Senators to put Australian families first."
Family First's Steve Fielding has voted with the Coalition to stop the tax, claiming it would hurt tourism operators and motorists in rural areas.
Greens Leader Bob Brown, who voted for the measure, says Senator Fielding should have taken more time to push his agenda.
"The sensible thing would have been to allow the second reading to vote to go into the committee stages, where he could have tested, with government, the options he was putting forward for protecting people who may be affected by these tax changes in the tourism industry or remote and rural Australia.
"But he didn't. He used his vote to cut the debate off there."